CSOS Adjudicator warns community schemes trustees
On 19 August 2023, Business Tech featured an article covering the recent CSOS Indaba, held in Johannesburg. The article (which is worth the read and can be accessed by clicking on the link above) highlights some important points for anyone living in or involved with the management of community schemes. Of particular interest was the experience and observations shared by CSOS external adjudicator, Advocate Menzi Simelane:
“I always ask myself when we get an adjudication – who wants to be a trustee? From my experience and observations, it’s a thankless task. Nobody’s ever going to thank [you], and yet everything you do, you do for them.”
In further expanding on the role of trustees, Simelane said:
“Many trustees have not even begun to comprehend the legal implications of being a trustee. In other words – the personal liability for your work as a trustee is great. Many have not gone to explore that.”
Simelane also noted that:
“The implications of your conduct as a trustee are immense to you personally, and many don’t think seriously about that.”
We couldn’t agree more. As we always say, trustees who execute their duties with integrity and in the best interest of their scheme can serve their term with peace of mind, but even that does not necessarily spare them from facing legal challenges. Having an experienced legal practitioner on your side when a dispute around personal liability arises can make all the difference.
On the flipside of that coin, if your scheme has been burdened by fraud and/or misappropriation of funds by the trustees and you wish to hold those responsible accountable, we can also provide advice to you regarding the best way for you to do so.
Our legal team has extensive experience assisting clients with dispute resolution, including giving advice regarding internal dispute resolution procedures, facilitating mediation, acting as arbitrator and assisting with applications to the CSOS for dispute resolution. Whether you are a potential applicant or find yourself in the position of respondent, whether the dispute is brand new or one that has been dragging on for ages, reach out to us at info@theadvisory.co.za to obtain an obligation-free quotation for our team to assist you.
Kind regards,
The Advisory Team
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ARTICLES - SEPTEMBER 2023
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